World

Japan's Prime Minister Urges Trump to Reconsider Tariffs in Key Talks

2025-05-23

Author: Arjun

In a high-stakes phone call on May 23, Japanese Prime Minister Shigeru Ishiba pressed President Donald Trump to ease the hefty tariffs imposed on Japan ahead of crucial trade negotiations.

As a vital ally and the largest foreign investor in the United States, Japan faces a baseline tariff rate of 10%, alongside punitive tariffs on its cars, steel, and aluminum. Recently, Trump had introduced additional reciprocal tariffs of 24% on Japan but deferred these measures until July.

Ishiba detailed that their 45-minute conversation covered a variety of pressing issues, including tariffs and economic security, stating, “I communicated Japan’s stance on US tariffs. Our calls for their removal remain unchanged.”

The Prime Minister emphasized a commitment not just to tariff discussions, but also to mutual investment and fostering job creation in the U.S. Ishiba's statements come as Japan's tariffs envoy, Minister of Economic Revitalization Ryosei Akazawa, heads to Washington for a third round of pivotal talks.

Akazawa remarked, 'The series of tariff measures by the U.S. are regrettable. We will vigorously seek a review.' He also highlighted the importance of reaching a mutually beneficial agreement, stating they will carefully consider U.S. proposals to find common ground.

Japanese media reports indicated that U.S. Treasury Secretary Scott Bessent will not be attending the upcoming discussions. Akazawa's visit to Washington is scheduled for May 30.

The implications of Trump's 25% auto tariffs are particularly severe for Japan, where approximately 8% of employment is linked to the automotive sector. Adding to the strain, a new 25% import tax on auto parts has also been implemented.

Back in February, Ishiba assured Trump that Japan would ramp up its investment to an ambitious $1 trillion annually. However, trade negotiations between Japan and the U.S. appear to be stagnating, even as the Trump administration moves towards resolving trade issues with other countries, such as China and the UK, according to Stefan Angrick from Moody's Analytics.